Lessons to Raise Financially Savvy Children
By Lauren Tidwell, Director of Operations, Victory Wealth Services
Helping children develop financial literacy early in life is one of the best ways to prepare them for a secure future. By introducing money management skills in fun and age-appropriate ways, parents can ensure their kids grow up with confidence in handling finances.
Start early: ages 3–6
At this stage, children can learn the basics of money through simple, visual lessons. The “Save, Spend, Give” jar method is an effective and interactive way to teach kids about budgeting. Assign a jar for each category and let them divide their allowance, helping them understand the importance of planning, generosity, and saving.
During trips to the store, let them use cash to buy small items. This practice reinforces the concept of exchange and value. You can also turn learning into a game by teaching them to identify and count coins.
Building habits: ages 7–12
As children grow, they’re ready to understand the connection between earning and spending. Introduce an allowance tied to chores to show that money is earned through effort. Help them set savings goals for larger purchases and track their progress with charts.
Interactive activities, like running a pretend store at home, are great for teaching budgeting and prioritization. Encourage them to think critically about spending choices and delay gratification when saving for something important.
Prepping teens for independence: ages 13–18
Teenagers are ready for advanced money lessons like budgeting, saving, and avoiding debt. Give them a fixed budget for planning an event, such as a family outing, and let them decide how to allocate funds. This teaches real-world money management skills.
You can also introduce the concept of credit by explaining how credit cards and interest work. If possible, help them open a savings account and show them how compound interest grows their money over time. If they’re working part-time, encourage them to save a portion of their earnings.
Lead by example
Parents play a powerful role in teaching financial responsibility. Demonstrate good habits by openly discussing budgets, savings goals, and financial planning. Children learn from observing how you handle money, so make it a family conversation.
By instilling financial literacy early, you’ll help your children develop skills and confidence that will benefit them throughout their lives.
Victory Wealth Services specializes in helping families achieve financial clarity and build lasting legacies. Visit 3741 Karicio Lane, Ste. 2 in Prescott. Learn more at www.victorywealth.com or by calling 928.778.1050.
Victory Wealth Services, LLC is an investment adviser registered in Arizona. Advisory services are only offered to clients or prospective clients where Victory Wealth Services, LLC and its representatives are properly licensed or exempt from licensure.